U.S.-listed companies tied to Greenland surged in premarket trading after the United States and Denmark reached a security deal for the Arctic territory. Greenland Energy, Greenland Mines and Critical Metals Corp all jumped as the agreement points toward an expanded American military presence on the island.
Shares of U.S.-listed companies exposed to Greenland surged on Monday after the U.S. and Denmark reached a deal on security arrangements for the Arctic territory. Greenland Energy led the move, soaring more than 154% during premarket trading.
Greenland Mines climbed over 70%, while Critical Metals Corp rose nearly 27%.
A pact tied to military access
The agreement, expected to be signed during the United Nations General Assembly this week, will see the U.S., Denmark and Greenland enter a pact to develop a significant military presence on the territory, while blocking Washington's adversaries from building bases there. It follows several months of President Donald Trump's threats to annex the self-governing Danish territory, with Trump insisting Greenland is critical to U.S. national security.
Announcing the deal, Trump said via Truth Social that the U.S. would "FOREVER have the complete ability to do what is necessary in Greenland" to secure the territory. He added that the agreement would come at no cost to the U.S. and that Washington would immediately begin developing a large military presence on the island. Key details of the agreement have not yet been made public.
Greenlandic officials seek to reassure
Greenlandic and Danish officials sought to reassure citizens over the weekend that the deal would respect the island's right to self-determination and the sovereignty of the Danish kingdom. Greenland's Prime Minister Jens-Frederik Nielsen said the agreement would strengthen the security of Greenland, Denmark, the United States and the Western Alliance, adding that it recognizes Greenland's interests within international cooperation.
The companies behind the rally
Greenland Energy is an oil and gas exploration firm working to unlock hydrocarbon potential in the Jameson Land Basin on the island's east coast. The Texas-based company, which has links to Trump, recently delayed plans to drill in Greenland after the island's government issued a warning to its joint venture partner over bringing equipment ashore without permission.
Meanwhile, Greenland Mines' Skaergaard Project ranks among the world's largest undeveloped deposits of palladium, gold and platinum. Critical Metals Corp, for its part, is developing the Tanbreez rare earths mine in southern Greenland.
Source: CNBC
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